Location: Houma-Bayou Cane-Thibodaux, LA | Metro: Houma-Bayou Cane-Thibodaux, LA MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $157,437 | 0.9% | C |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 70363 reveals a critical gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 70363 in fiscal year 2024 is set at $1080, while the Census ACS reports the market rent at $1077. This means the FMR is $3 higher than the market rent, representing a 0.28% premium.
This slight premium indicates that voucher tenants can provide a stable and predictable source of income for landlords and small-portfolio investors. The government's guarantee to cover the rent ensures a steady cash flow, making this an attractive yield play. Given that only 26.1% of residents are renters, the demand for rental properties is relatively low, which makes the stability offered by Section 8 vouchers particularly valuable.
In ZIP 70363, where the median home value is $125,673 and the median household income is $46,748, landlords should consider the benefits of accepting Section 8 vouchers. While the difference between FMR and market rent is minimal, the security of having guaranteed payments can outweigh the potential costs of maintaining a property below open-market rates. It's important to note that despite the low percentage of renters, the income levels suggest that many residents may rely heavily on the Section 8 program to afford housing.
To summarize, the gap between the FMR and market rent in ZIP 70363 is a mere $3, or 0.28%. For landlords, this small premium can translate into a reliable investment strategy, especially given the local economic context. Accepting Section 8 vouchers can be a strategic move to ensure occupancy and financial stability in a market where rental demand is lower compared to homeownership.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.